Morning update: Dollar and bond yields touching all time highs as oil holds near $90

The U.S. dollar and Treasury yields are pushing higher while crude oil remains near $90 a barrel. Volatility is up modestly but the VIX remains relatively contained near 16.

The U.S. dollar is firming in early trading, with the Dollar Index around 102.45 and USD/JPY near 158.24.

Bond yields are also moving higher. The U.S. 2-year Treasury yield is around 4.81%, while the 10-year yield has climbed to roughly 5.34%.

Japan’s 10-year government bond yield is also higher near 3.13%, keeping pressure on global rates markets.

Crude oil remains elevated near $90 a barrel after a strong run over the past several weeks. Oil holding at these levels keeps energy inflation in focus and could complicate expectations for easier monetary policy.

Despite the rise in yields and the dollar, market volatility remains relatively contained. The VIX is around 15.75, up on the day but still well below levels normally associated with broad market stress.

For equities, the key question is whether Treasury yields continue pushing higher. If yields stabilize, stocks may be able to absorb the move. If the 10-year continues climbing alongside the dollar, valuation pressure on technology and other long-duration assets could increase.